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Mint
13-05-2025
- Business
- Mint
Zee Entertainment share price jumps as Arbitral Tribunal rejects Aditya Birla Finance's ₹134 crore claim
Zee Entertainment Enterprises (ZEEL) on Tuesday said the Arbitral Tribunal has rejected all claims filed by Aditya Birla Finance Ltd (ABFL) in a ₹ 134 crore dispute linked to a loan extended to Siti Networks Ltd, sending the company's stock higher. Zee share price rallied after the relief from the Arbitral Tribunal, gaining as much as 4.39% to ₹ 122.30 apiece on the BSE. Aditya Birla Finance had initiated arbitration proceedings against Zee Entertainment Enterprises, seeking enforcement of a Letter of Comfort (LOC) allegedly issued by the company in connection with a ₹ 134 crore term loan granted to Siti Networks. The finance firm had claimed that the LOC effectively served as a corporate guarantee and demanded that Zee be held liable for the repayment. In its plea, ABFL had sought multiple reliefs, including a declaration that the LOC constituted a guarantee and directions for Zee to pay the outstanding loan with interest — totaling ₹ 174.57 crore. Additionally, it sought a refund of ₹ 108 crore that Siti had paid to Zee in FY 2020–21. However, Zee contested the claim, asserting that the LOC did not amount to a financial guarantee. The company maintained that the ₹ 108 crore was part of a legitimate business transaction—consideration for signals and channels provided to Siti as per Interconnection Agreements governed by the TRAI Act. Zee further countered with a ₹ 15 crore claim, citing that the amount was deposited by Siti in fixed deposits on Zee's behalf but had been appropriated by ABFL. In its final award dated May 12, 2024, the Arbitral Tribunal dismissed all claims made by ABFL. However, it did not make a final ruling on Zee's counterclaim, instead leaving the matter open and allowing both parties to pursue further remedies before the National Company Law Appellate Tribunal (NCLAT). At 1:45 PM, ZEE share price was trading 4.01% higher at ₹ 121.85 apiece on the BSE.
Mint
13-05-2025
- Business
- Mint
Zee Entertainment share price jumps as Arbitral Tribunal rejects Aditya Birla Finance's ₹134 crore claim
Zee Entertainment Enterprises Ltd (ZEEL) on Tuesday said the Arbitral Tribunal has rejected all claims filed by Aditya Birla Finance Ltd (ABFL) in a ₹ 134 crore dispute linked to a loan extended to Siti Networks Ltd. Zee share price rallied after the relief from the Arbitral Tribunal. Zee shares spiked as much as 4.39% to ₹ 122.30 apiece on the BSE. Aditya Birla Finance had initiated arbitration proceedings against Zee Entertainment Enterprises, seeking enforcement of a Letter of Comfort (LOC) allegedly issued by the company in connection with a ₹ 134 crore term loan granted to Siti Networks. The finance firm had claimed that the LOC effectively served as a corporate guarantee and demanded that Zee be held liable for the repayment. In its plea, ABFL had sought multiple reliefs, including a declaration that the LOC constituted a guarantee and directions for Zee to pay the outstanding loan with interest — totaling ₹ 174.57 crore. Additionally, it sought a refund of ₹ 108 crore that Siti had paid to Zee in FY 2020–21. However, Zee contested the claim, asserting that the LOC did not amount to a financial guarantee. The company maintained that the ₹ 108 crore was part of a legitimate business transaction—consideration for signals and channels provided to Siti as per Interconnection Agreements governed by the TRAI Act. Zee further countered with a ₹ 15 crore claim, citing that amount was deposited by Siti in fixed deposits on Zee's behalf but had been appropriated by ABFL. In its final award dated May 12, 2024, the Arbitral Tribunal dismissed all claims made by ABFL. However, it did not make a final ruling on Zee's counterclaim, instead leaving the matter open and allowing both parties to pursue further remedies before the National Company Law Appellate Tribunal (NCLAT). At 1:45 PM, ZEE share price was trading 4.01% higher at ₹ 121.85 apiece on the BSE. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Business Upturn
13-05-2025
- Business
- Business Upturn
Zee Entertainment gets relief as arbitral tribunal rejects Aditya Birla Finance's Rs 134 crore claim
Zee Entertainment Enterprises Ltd (ZEEL) has received a favourable ruling from an arbitral tribunal in a dispute initiated by Aditya Birla Finance Limited (ABFL) concerning a ₹134 crore term loan extended to Siti Networks Limited. ABFL had initiated arbitration to enforce a Letter of Comfort (LOC) it claimed had been issued by Zee in relation to the loan. ABFL sought reliefs including a declaration that the LOC amounted to a guarantee, directing Zee to repay ₹174.57 crore with interest or refund ₹108 crore that Siti allegedly transferred to Zee during FY21. Zee also filed a counter-claim of ₹15 crore, which it said was money owed by ABFL to Zee, appropriated from a fixed deposit originally made by Siti. Zee contested ABFL's claims, arguing that the LOC did not constitute a financial guarantee and that the ₹108 crore reflected valid business payments for channels and signals under interconnection agreements governed by TRAI rules. In a final award dated May 12, 2024, the arbitral tribunal rejected all claims made by ABFL. However, it did not issue a conclusive ruling on Zee's ₹15 crore counterclaim. The tribunal instead granted Zee the liberty to pursue remedies before the National Company Law Appellate Tribunal (NCLAT). The ruling significantly relieves Zee of potential liabilities and strengthens its legal stance amidst ongoing financial and corporate challenges. Disclaimer: The information provided is for informational purposes only and should not be construed as legal or financial advice. Please consult a qualified advisor before making any investment or legal decisions. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
